DERC for allowing discoms to keep greater non-tariff revenue

As per the draft regulations floated by Delhi Electricity Regulatory Commission (DERC), the power utilities may be allowed to retain up to 60 per cent of the revenue earned from other businesses such as consultancy.PTI | August 17, 2016, 16:38 IST

New Delhi: The national capital's power regulatory body has proposed changes in its regulations to allow the discoms and DTL, which claim to be under financial stress, to retain a larger share of their non-tariff income.

As per the draft regulations floated by Delhi Electricity Regulatory Commission (DERC), the power utilities may be allowed to retain up to 60 per cent of the revenue earned from other businesses such as consultancy.

Currently, they are allowed to keep 20 per cent of such earnings.

Delhi Transco Ltd (DTL) was carved out of Delhi Vidyut Board in 2002 as a separate entity to function as transmission utility.

Discom BSES has repeatedly asked the DERC to liquidate their regulatory assets which they claim have touched around Rs 16,000 crore, pending dues that can be recovered by way of increased tariffs.

This move by DERC is seen as an attempt to encourage non-tariff income.

The city's power tariff saw no revision last year and is likely to stay untouched this year as well.

The AAP government has time and again pulled up the discoms terming their performance as "atrocious".

The proposed amendment in the DERC (Treatment of Income from Other Business of Transmission Licensee and Distribution Licensee) Regulations, 2005, also states that the utilities will be able to retain 40 per cent of the revenue in case capital assets (advertisements on electricity poles) are used to earn that amount, as against 20 per cent allowed currently.

Through a public notice, the DERC has requested all stakeholders to come up with comments or objections to the draft amendment regulations by September 16.

The non-tariff income of these utilities is around Rs 10 crore per month as of now.